New Forecasts: Here's What Analysts Think The Future Holds For Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS)

Celebrations may be in order for Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Tarsus Pharmaceuticals will make substantially more sales than they'd previously expected. The stock price has risen 9.2% to US$17.47 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After the upgrade, the six analysts covering Tarsus Pharmaceuticals are now predicting revenues of US$57m in 2024. If met, this would reflect a substantial 299% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$4.90 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$49m and losses of US$5.07 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for Tarsus Pharmaceuticals

Despite these upgrades, the analysts have not made any major changes to their price target of US$46.13, implying that their latest estimates don't have a long term impact on what they think the stock is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Tarsus Pharmaceuticals' growth to accelerate, with the forecast 203% annualised growth to the end of 2024 ranking favourably alongside historical growth of 28% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Tarsus Pharmaceuticals is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting Tarsus Pharmaceuticals is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Tarsus Pharmaceuticals.

It's great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. For more information, you can click through to our free platform to learn more about these forecasts.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.